Bernstein Liebhard LLP today announced that several class actions, one of which it has filed on behalf of its client, have been commenced in the United States District Court for the District of Nevada on behalf of purchasers (the “Class”) of Ormat Technologies, Inc. (NYSE: ORA) (“Ormat” or the “Company”) common stock during the period of May 6, 2008 and February 24, 2010, inclusive (the “Class Period”). Defendants are Ormat, Yehudit Bronicki, and Joseph Tenne.
Ormat and its subsidiaries engage in the geothermal and recovered energy power business in the United States and internationally. The Company develops, builds, owns and operates geothermal and recovered energy-based power plants, and sells electricity and equipment for geothermal and recovered energy-based electricity generation.
The complaint alleges defendants violated the Securities Exchange Act of 1934. Throughout the Class Period, defendants knew or recklessly disregarded that their public statements concerning Ormat's business, operations and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly continuing to capitalize costs for individual projects after Ormat had decided to abandon further exploration and development of individual projects instead of expensing those costs in the period in which any such determination was made; (2) that, as a result, the Company's financial results were overstated during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5), as a result of the above, that the Company's financial statements were materially false and misleading at all relevant times.
On February 24, 2010, Ormat disclosed that the Board of Directors and Audit Committee of the Company, upon recommendation of management, had concluded that the Company's financial statements for the year ended December 31, 2008 (the "2008 Financial Statements") contained in its Annual Report on Form 10-K required restatement and should no longer be relied upon, and additionally, that the Company's prior related earnings and news releases and similar communications should also no longer be relied on to the extent they related to the 2008 Financial Statements.